FLR (M) Renewal Issues

Hi Everyone,

My partner and myself need to submit our new FLR (M) application by the 30th of November.

We have everything required other than when it comes to the finance criteria.

We actually run a very successful business and have turnover in excess of £130,000 per year with incomes of £53,000 for myself and £35,000 for my American partner over the last financial year.

Our issue is that as we are the only directors and employees of the business we do not actually take a salary, we have no need to as the money in the business is just ours we just take funds as and when necessary. I believe this causes us a large issue with the finance requirement as we cannot provide payslips or dividend vouchers matching to pounds and pence what actually hits our personal bank accounts, as an example most of the bills come out of my account so more money is generally paid there. We have payslips and I can get dividend vouchers but they won't tally up for specific payments.

We have the opportunity with two months to go, to go employed for my Dad's business on £60,000 per year each which would obviously be using Category B then rather than F which is what I thought we would be using.

This would mean we could get two payslips in the coming couple of months up to submission showing an income for both of us of £5,000 per month, thus equalling £20,000 over the last year.

This would, I understand then solve our financial requirement problem.

Does anyone know if this is something we will have to do? Obviously I would prefer to not go employed as this is not how we want to work but we are prepared to if it means resolving this issue.

Are we allowed to use Cat B with a family business? We are aware of the many forms of documentation that are require for this but I am confused as to why we require 12 months bank statements to rely on an income brought in over the last 2 months? My family business end of financial year is the end of October but I would prefer to submit this application at the start of November at the start of the 28 days, will they accept the previous years accounts as it will be extremely difficult to get accounts drawn up very quickly.

I would really appreciate a quick reply as we are losing sleep over this and really struggling,

Thanks

Do you have savings of £62,500 held in either or both of your names for greater than 6 months and instantly accessible with or without penalty?

Hi!

Unfortunately not, we have over that now but our investment went down 6 months ago so won’t work this way!

We actually run a very successful business and have turnover in excess of £130,000 per year with incomes of £53,000 for myself and £35,000 for my American partner over the last financial year.

Our issue is that as we are the only directors and employees of the business we do not actually take a salary, we have no need to as the money in the business is just ours we just take funds as and when necessary. I believe this causes us a large issue with the finance requirement as we cannot provide payslips or dividend vouchers matching to pounds and pence what actually hits our personal bank accounts, as an example most of the bills come out of my account so more money is generally paid there. We have payslips and I can get dividend vouchers but they won't tally up for specific payments.

As you are self-employed, you will need to apply under Category F,  but it doesn't matter if you don't draw a salary or that you don't have payslips or dividend vouchers, because the requirements only ask for proof of those IF you receive a salary/dividends.

There is no requirement that you must receive a salary or dividend vouchers... and as you don't, you just use the annual profit/income from the business after expenses as your income proof.

So, you just provide the following documents, without evidence of payslips/dividend vouchers:

• Company Tax Return CT600 (a copy or print-out) for the last full financial year and evidence this has been filed with HMRC, such as electronic or written acknowledgment from HMRC
• evidence of registration with the Registrar of Companies at Companies House. If the company is required to produce annual audited accounts, such accounts for the last full financial year.
• if company is not required to produce annual audited accounts, unaudited accounts for the last full financial year and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006) or who is a member of the Institute of Financial Accountants;
• Corporate/business bank statements covering the same 12-month period as Company Tax Return CT600
• a current Appointment Report from Companies House

One of the following documents must also be provided:
• a certificate of VAT registration and the VAT return for the last full financial year (a copy or a print-out) confirming the VAT registration number, if turnover is in excess of £79,000 or was in excess of the threshold which applied during the last full financial year
• proof of ownership or lease of business premises
• original proof of registration with HMRC as an employer for the purposes of PAYE and National Insurance, proof of PAYE reference number and Accounts Office reference number. This evidence may be in the form of a certified copy of the documentation issued by HMRC

Problem solved.

Hi,

In removing funds from a limited company they are taken as salary or dividends so we do in fact take these,
We just take them as adhoc payments rather than in a specific value, this is obviously all shown in our accounts and p60s but not in payslips or dividend vouchers! Does that change your recommendations?

I have just spoke to home office on phone who said something similar to you but also said if there’s any issue they will just move us onto the ‘ten year process’, any idea what this is?

Can I also ask your experience because obviously we may be relying on your expertise here

Thank you so much for your help

The 10-year process is when you are granted a visa ‘outside the rules’ on a 10-year path to ILR, based on Article 8: Right to Family Life in the UK, because you don’t actually qualify for the visa you applied for.

It means that instead of qualifying for ILR and citizenship in 2.5 years , you would have to spend another 7.5 years on FLR(M) visas before you can qualify for ILR, at a cost of several thousand pounds extra in visa fees and IHS surcharge.

However, 10-year path visas usually are only granted in the situation where the applicant has a UK citizen child living in the U.K. whose life would be seriously disrupted if the applicant had to leave the U.K. and split the family up.

Basically, you want to avoid the possibility of being put on the 10-year path at all costs.


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